Fitch: Litigation Accrual Impacts State Street's 1Q15 Earnings

April 24, 2015 6:03 PM

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(The following statement was released by the rating agency) CHICAGO, April 24 (Fitch) State Street Corporation's (STT) first quarter 2015 earnings of $377 million were down relative to the sequential quarter due in part to litigation accrual of $150 million due to issues surrounding foreign exchange (FX) practices.

These earnings equated to a 7.9% return on average common equity, which according to Fitch Ratings, is below long-term expectations. Relative to the year-ago quarter earnings increased by 6% due in large part to higher revenue generated from FX trading amid higher FX volatility during the quarter. A...

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